In a statement that stunned the industry, Alistair Burt raised the prospect that the Chancellor’s soft drinks levy could be widened in a bid curb kids’ bulging waistlines.

The Government’s sugar tax is part of its obesity strategy to help children be healthier

Ministers are finalising a long-delayed Childhood Obesity Strategy with one in five 10-year-olds currently classed as obese.

And Mr Burt signalled food firms will be given an ultimatum to make snacks healthier or face having taxes whacked on their products.

He was asked in the Commons by Lib Dem former minister Norman Lamb to consider “taxing sugar as an ingredient to create an incentive for reformulation of products to reduce sugar content across the board rather than just picking on one type of product”.

And he replied: “What you are calling for is exactly what the strategy does. It is designed to be quite wide and take into account the possibility of other action in other places.”

Alistair Burt has raised the prospect that the Chancellor’s soft drinks levy could be widened in a bid to curb kids’ bulging waistlines

Government sources played down suggestions that sugar as a specific ingredient could be taxed.
But they made clear a similar approach to soft drinks – where firms have been given two years to reduce sugar content or face a levy – could be taken to other products.

A source said: “We clearly have said that as part of the obesity strategy we are looking for manufacturers to be more responsible and change products.

“We know that we are not going to build a healthier society through people eating steamed fish and kale.

“These things that people eat in large quantities need to be healthier.

“Lots of senior people on both the scientific and political side have said that the industry needs to know they are on notice to produce the meaningful change that we need to see.”

Lib Dem former minister Norman Lamb asked the Government to consider taxing sugar as an ingredient rather than just in soft drinks

Mr Lamb welcomed the move, telling The Sun: “It certainly leaves open the impression that they are more flexible and open to consider these things than I imagined.”

But it raised fears hard-pressed Brits will be hit in the pocket by yet another nanny state tax on treats while a leading industry is hit hard.

Food and Drink Federation director general Ian Wright said: “Any extension of taxes on food is most unwelcome.

“Food and drink manufacturing is the largest manufacturing sector in Britain employing more than half a million people, and the uncertainty that comments like this create will do nothing for the prospects of the industry or to solve the obesity problem in any way.

The food industry is upset at the news smoothies, cereals and other sugary foods could be included in the sugar tax

“Across all categories our members are re-formulating and reducing portion size but this can only be done in line with consumer demand. If members go too far too fast consumers move to other products – and that helps nobody.”

Tory MPs David Nuttall and Philip Davies both criticised the Department of Health’s “nanny state” approach.

Mr Nuttall said: “It would be far better if children were simply advised to move about more and eat less.”

And Mr Davies called for the soft drinks tax to be scrapped “before it becomes the new pasty tax”.
Mr Burt told MPs the strategy would be unveiled in the summer.

It is also likely to curb advertising of high sugar, high salt and high fat foods to kids, and restrict promotions on the products.